What does a building insurance policy cover – and what does it not?

Analysis: The scope of services in detail

To ensure the security of your assets, we need to dissect the building insurance coverage layer by layer. What's included, what's excluded , and why?

The basis: Fire and elemental events

The core of building insurance coverage is protection against natural disasters and fire. In most cantons, this is the mandatory part.

• Fire: The building insurance covers damage caused by fire, smoke (sudden and accidental ), lightning, explosion and even aircraft/spacecraft crashes.
• Natural hazard damage: The law defines very precisely what is covered by building insurance . This includes floods, inundations, storms (usually from 75 km/h), hail, avalanches, snow pressure, rockfalls, and landslides.

Important for building insurance coverage : The event must affect the building "from the outside." A storm that rips off the roof is a classic case for building insurance coverage .

The big gap: not all water is the same.

This is where the most common misunderstanding arises. Many homeowners assume that all water damage is covered by their building insurance . This is incorrect.

• What's missing: Water leaking from pipes inside the house (pipe breakage) and water forced back through the sewer system (backflow) are not covered by the cantonal building insurance .
• The consequence: If a heating pipe bursts and ruins the parquet flooring, the mandatory building insurance won't pay anything. To close this gap in your building insurance coverage , you absolutely need private "building water damage insurance." This extends the building insurance coverage to include internal water hazards. Without this add-on, your building insurance coverage is incomplete.

Earthquakes: The underestimated risk

Another blind spot in building insurance coverage is earthquakes. Although parts of Switzerland (Valais, Basel) are at risk, earthquake damage is usually excluded from standard building insurance coverage or only minimally covered through voluntary pools (e.g., in the canton of Zurich).

• The reality: A severe earthquake can lead to total loss. Since this is not covered by standard building insurance , many owners face financial ruin in such a case.
• The solution: Anyone wanting comprehensive building insurance coverage must take out separate earthquake insurance with a private provider.

Glass breakage and surroundings

Windows and furniture are not automatically included in building insurance coverage .

• Building glass: If window panes, sinks, or the glass-ceramic cooktop break, standard building insurance (fire/natural hazards) does not cover the damage. This requires an additional "building glass" policy.
• Surroundings: The garden, retaining walls, or pool are often only partially covered by building insurance . Storm damage to trees or fences is often excluded or limited in amount. Check carefully how far your building insurance covers your property.

What is a "building" and what is a "household goods"?

For building insurance coverage, the distinction is crucial: What is permanently installed, and what is movable?

• The rule: Everything that is permanently attached to the building (fitted kitchen, parquet flooring, windows, heating) is covered by building insurance .
• The exception: Anything that would fall out if you turned the house upside down (furniture, carpets, clothing) is not covered by building insurance , but by household contents insurance.

This distinction is important because in the event of a fire, the building insurance will pay for the reconstruction of the kitchen, but not for the burned dining table.

Exclusion criteria: When the insurance company won't pay

Even in the case of insured events, building insurance coverage can be reduced or denied.

• Lack of maintenance: Building insurance is not comprehensive coverage for old houses. If water penetrates through a rotten, poorly maintained roof, this is often not recognized as storm damage, but rather as a matter of negligence. Building insurance does not cover wear and tear.
• Gross negligence: If you leave your skylights open during a storm warning, your insurance company may reduce your payout. Building insurance does not protect against recklessness.

Cantonal differences in building insurance coverage

Building insurance coverage varies depending on the place of residence.

• Monopoly cantons: In 19 cantons, insurance coverage (fire/elemental) is state-run and identical.
• GUSTAVO cantons: In Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais, and Obwalden, there is no monopoly. You must take out private insurance. Here, the details of building insurance coverage can vary, and you have the freedom to create your own packages.

Conclusion

The question "What does building insurance cover?" can be answered like this: It covers external disasters, but rarely internal damage. Mandatory building insurance protects your livelihood against fire and natural disasters like storms and hail. That's a lot, but not everything.

The biggest everyday risks to your wallet – namely burst water pipes and broken glass – are explicitly not covered by the mandatory building insurance . Relying solely on this mandatory coverage leaves you with a weak safety net. Comprehensive building insurance coverage can only be achieved by combining the basic cantonal insurance with private add-ons for water, glass, and, if necessary, earthquakes. Review your policies every few years to ensure your building insurance coverage keeps pace with the value of your home.

If you are unsure whether your current building insurance coverage truly covers all the risks to your property or where dangerous gaps exist, Loft offers neutral insurance checks and comparisons.

Glossary

• Building insurance coverage: The defined scope of damage (usually fire and natural hazards) for which the insurance company pays.
• Natural hazard damage: Damage caused by natural forces such as storms, hail, floods, or avalanches. This forms the core of building insurance coverage .
• GUSTAVO cantons: Cantons without a state insurance monopoly. Here, building insurance coverage must be arranged with private providers.
• Pipe burst: Water damage caused by defective pipes inside the house. This is not covered by the cantonal building insurance policy and requires additional insurance.
• Replacement value: The sum insured usually corresponds to the amount needed to rebuild the building to its original condition. This is standard coverage in building insurance .